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How the EU’s AI Act Will Impact Tech
Just last week, EU policymakers agreed on a draft of a landmark law to regulate the use of artificial intelligence (AI) across member states. Reactions to this policy—known as the AI Act—have been polarized. French President Emmanuel Macron has criticized the Act as an obstacle to Europe’s technological advancement. On the other hand, President of the European Commission Ursula von der Leyen has praised regulators for taking this bold step.
At HPE OEM Solutions, we stand in agreement with the latter. In our opinion, it is crucial that legislative guardrails are put in place now to ensure that businesses develop and use AI ethically and sustainably. We are not dealing with a temporary phenomenon; AI will continue to impact our lives in ever-expanding ways over the next few decades.
While AI technologies have the potential to redefine innovation and productivity, we are also cognizant that they spell risks to data privacy, long-term competitiveness, and environmental sustainability.
What OEMs need to do now
The EU AI Act classifies AI systems into four risk categories: prohibited, high-risk, limited-risk and minimal-risk. We are sure that none of the OEMs we are working or hope to work with are developing systems in the first category, so let’s focus on the latter three.
High-risk AI systems include use cases such as healthcare, education, credit scoring, biometric identification and recruitment. OEMs working on AI solutions in these areas must comply with the Act’s rules on data quality, transparency, human oversight and security. These systems will also be subjected to a mandatory conformity assessment before being allowed to enter the market.
Limited risk AI systems refer to applications that generate content or provide chatbot services. These solutions need to be programmed to explicitly inform their users that they are interacting with an AI and provide opt-out options.
Finally, minimal-risk AI systems deal with entertainment or personal purposes, and are subject to voluntary codes of conduct and best practices. OEMs need to keep up with these requirements to ensure compliance.
Of course, here at HPE OEM Solutions, we are committed to working through these legislative requirements with our partners.
Responsible AI can also be profitable
The millennial and Gen Z population currently account for 43% of the U.S. and 49% of global inhabitants, making them an up-and-coming force in terms of purchasing power. Not only are they willing to pay more for sustainable and ethically-sourced products, but they are even swaying other age groups to adopt the same buying values and behaviors. To secure the loyalty of this new generation, companies need to communicate and act with integrity and ethical standards.
Many of our OEM partners are currently designing the AI-driven solutions of the future. HPE’s position as a global technology leader means that we have the responsibility for shaping and deploying AI systems that are transparent, fair, and accountable—while holding our partners to the same high standards. These standards are:
Ethical AI principles: HPE has established a set of ethical AI principles to guide its development and use of AI and related technologies. We also have the HPE Advisory Board, helmed by a panel of experts in the field, to continually define AI ethics and governance.
AI for Good: HPE is actively engaged in using AI for social good. Through initiatives like the HPE Living Progress Challenge, our company is collaborating with organizations to address societal issues using AI.
Human-centric design: HPE prioritizes human-centric design in its AI solutions to ensure technology serves people instead of dictating their actions. This approach resonates with the AI Act’s emphasis on human oversight over AI systems. Check out this great video from Kirk Bresniker, Chief Architect and HPE Fellow/VP & CTO and Hewlett Packard Labs.
Conclusion: The AI Act is a cause for optimism
We believe the AI Act is just the first in a series of laws that will regulate AI around the world. Notably, the Biden administration has issued a recent executive order on AI and a Blueprint for an AI Bill of Rights. Companies need to act now to align their business practices with regulatory frameworks and commit themselves and their stakeholders to upholding responsible AI. As the suppliers of new products and services, we can help ensure that the human race reaps the benefits while avoiding the risks of AI.
Get in touch with our OEM team if you have any questions or would like to explore this further: HPE OEM Solutions
MattQuirk
With a passion for innovation and technology, I am lucky enough to work within high-growth opportunities across multiple industries including manufacturing, healthcare, energy, media and entertainment and security - with technology innovations that are advancing the way people live and work such as AI, autonomous everything and 5G.
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